This document discusses the rise of e-commerce and marketplaces in Latin America and their potential for advertising. It notes that while e-commerce penetration is lower in Latin America compared to other regions, it is growing rapidly and expected to double in size within five years. Marketplaces provide access to large audiences with a purchasing mindset and are winning a growing share of digital ad spending. The document argues that while marketplaces were initially seen as only performance marketing channels, they can also serve as effective branding tools by helping brands discover and influence customers earlier in their purchasing journeys. It provides several examples and insights into customer behavior that marketplaces can uncover to help brands optimize for discovery, consideration, and purchase.

1. Marketing & Insights Director LATAM
Advertising - MercadoLibre
Juan Lavista
#1 e-commerce and fintech in LATAM
Rise of marketplaces in
Advertising: It's all
about the mindset

2. The birth of e-commerce
‘71
Stanford/MIT students
trading pot
‘84
Jane Snowball: ordering
groceries on her TV
‘94
Dan Kohn selling
Sting’s CS
’94
Pizza Hut: Extra
pepperoni online order

3. Source: emarketer, 2019.
Retail eCommerce Sales Penetration
Mobile Commerce e-commerce
Latin America
5.8%
2.1%
4.2%
1.4%
Western Europe
North America 4.7%
10.7%
4.2%
10.3%
China 36.6%
29.7%
China vs LATAM: Lot´s of catch up = huge upside!

4. Source: emarketer, May 2019.
LATAM = +$140Bn
In 5 years, global
e-commerce will grow 2x

5. Source: emarketer, May 2019.
Argentina = +$2Bn
In 5 years, argentinian
e-commerce will grow

6. Marketplaces as
distribution
enablers to scale
DNVBs in USA

7. 106MM USD average per brand in a year
75 largest web-only brands drove
$8 billion in online sales last year
Source: “Top Digital Native Brands”, Digital Commerce 360, 2018
Rise of Digital Native Vertical Brands

8. Brands are actively
ring-fencing customers
& benefits, to maintain
leadership positions
Acquisitions
Active M&A strategy to manage biz
erosion & capitalize white spaces

9. What worked before,
might not be the recipe
for today's online world

10. Dollar Shave Club and
Harry's shrunk Gillette´s lion
share from 70% to 50%
Has your brand been disrupted yet?
Source: CNBC, Sep 2018.
VS.

11. Offline trade marketing dollars are moving to
search on marketplaces

12. Digital shelfTraditional shelf

13. Visibility (Brick & Mortar) Visibility (Digital)

14. Advertising in e-Commerce

15. Do you think marketplaces
are a place to do Branding
or Performance?

16. Source: emarketer, 2018
Digital Ad Spending LATAM: growth projection
Digital: +$1Bn/year+10pts in 5 years

17. Source: Forecast 2021, Digital Ad Spending US & China, emarketer, 2019
Marketplaces are winning share in digital ad spending
China 2019
Digital Ad Revenues
by Company
USD 80 Bn
Other media
players
% e-commerce/Retail 36.6% % e-commerce/Retail 4.2%
Marketplaces
1% or less
Others
34%
Google &
Facebook
66%
% e-commerce/Retail 10.7%
US 2019
Digital Ad
Revenues
by Company
USD 129 Bn

18. Deep dive on marketplaces as media vehicles
Source: “Amazon Ads: benchmark report”, Tinuti, 2019 & MELI Internal Data.
USA: Advertisers are balancing
Branding & Performance
LATAM: Focus on
Performance (for now)
Branding Performance

19. What’s driving these choices?

20. Massive
audiences...
with purchasing
mindset
Search...

21. Source of
NEW buyers
71%
of all purchases in
US leading marketplace
are new-to-brand
Source: “Amazon Ads: benchmark report”, Tinuti, 2019
Leaky
bucket!

22. +65%
online searches
are made in
marketplaces
Source: “La primera vez que pensaste buscar este producto,
¿Por qué sitio web comenzaste?”, Estudio GFK, 2019.
Where are you investing
your search dollars?

23. Brands must build awareness inside
the marketplaces at discovery stage
5 out of 10
top searches are unbranded
Source: MELI Internal Data

24. “The challenge is rising above the noise”

25. Brands are 3x
more likely to be
purchased in a
consumer
initial-consideration
- McKinsey

26. Do you now think marketplaces
can serve as a brand building tool?

27. The power of
INSIGHTS
But what drives most value
for brand builders & sales?

28. Discovery
Consideration
Purchase

29. Discovery
Consideration

30. WHO
are they?
WHAT are they
looking for?
HOW do
they buy?
WHEN do
they buy?

31. 2nd most purchased category in
Argentina
The portable knowledge center
used by CEOs to reach success
Books
Insights
Source: MELI Internal Data

32. Their most purchased category is
construction
Those survivors who lived their youth
without mobile, internet, social & tinder
Baby Boomers
Insights
Source: MELI Internal Data

33. 3x more conversion rate,
concentrating +80% of our traffic
Hundreds of icons that are
on our cell phone, although
99% of us use only 10
Apps
Insights
Source: MELI Internal Data

34. Seasonality:
Facts

35. Where 7 out of 10 product searches
are unbranded and 80% is mobile
a Monday that lasts a week
(and sometimes more)
Cyber Monday
Source: MELI Internal Data
Recap Seasonalities

36. 45% of sales during
Hot Sale
Those devices that make our
lives a better place to live in
Consumer Electronics
Source: MELI Internal Data
Recap Seasonalities

37. 19x more products purchases
than a normal day and +90%
from Brand Stores
Black Friday
The day when everyone
goes mad on buying stuff
they don’t need
Source: MELI Internal Data
Recap Seasonalities

38. Most purchased product during
Cyber Monday 2019 in Argentina
The real deal for
first-time parents
Diapers
Source: MELI Internal Data
Recap Seasonalities

39. Key Takeaways
Branding: Brands need to drive awareness & consideration,
specially amongst those in discovery stage
Insights: Marketplaces have insights that only ecommerce
platforms can deliver
Performance: Brands are betting on marketplaces to connect
with audiences in a purchasing mindset

40. Thank you